M’sia has highest percentage of women board members in Asia

At 26%, country is ahead of Singapore, Thailand and HK, and above the global average of 19.7%

PETALING JAYA: Malaysia posted the highest percentage of women board members in Asia with women holding 26% of board seats.

This is ahead of similar economies such as Singapore (17.6%), Thailand (17.8%) & Hong Kong (13.9%), and above the global average (19.7%).

“However, Malaysia is still 4% shy from the targeted 30% representation by 2020. Set by the government in 2011, the Corporate Governance (CG) Blueprint 2011 and the current Malaysian Code on Corporate Governance 2021 (MCCG 2021) stipulates that if this target is not met, the board should then disclose its action plan and time frame to achieve that mark.

“Boards should also review the participation of women in senior management roles to ensure there is a healthy talent pipeline,“said the seventh edition of Women in the boardroom: A global perspective report by Deloitte in collaboration with The 30% Club.

Although the 30% target has yet to be achieved, the topic of greater gender diversity on boards and in the workforce continues to be at the forefront of discussions among regulators and organisations. Among the significant changes under the 2021 revisions to the MCCG is an extension of the 30% gender diversity requirement to all companies, not just large companies (companies on the FTSE Bursa Malaysia Top 100 Index or companies with market capitalisation of RM2 billion and above).

The percentage change for tenure term of women in board seats has also decreased for Malaysia, which could be due to the wider pool of women candidates in these countries given that the overall women participation on boards has increased.

The MCCG notes that an effective board should have adequate diversity and independence to avoid “groupthink.” Boards should consist of at least 30% women directors, and there should be gender diversity policies in place to support the participation of women on boards. These policies should be disclosed in the company’s annual report.

“There has to be active involvement from the board with the support of its committee; for example nomination committee to push this agenda within an organisation. It is recommended for organisations to have a comprehensive succession plan in place that can be used to not only identify the candidates for both the board and management team, but also for training and development purposes,” said Deloitte Malaysia risk advisory executive director Muzafar Kamal.

Malaysia also has the highest percentage of women CFOs among the Asian nations surveyed (34.9%), more than double the global average of 15.7%.